Full and final settlement help thread

2makeit · 29 March 2014 at 2:49PM

i have these companies to deal with-

Tesco Loan(2005) now with Shoosmith with CCJ -
Capital One(2005) -credit card
Clydesdale bank overdraft now with Apex
Egg(2005) credit card now with RMA resolve

i am writing to them again for updated figures,
some have been passed through a few agencies since the money was first lent to me.

if a partial settlement is agreed how long does it show on your credit file?
and can they chase you later for the rest of the money?

Stewart_78 · 29 March 2014 at 9:01PM

Depends if the accounts are defaulted. If so, they will fall off your file 6 years after the default date whether paid or not. If they are not, they fall off 6 years from the date they are settled. If you are negotiation settlements it's a good idea to get it in writing that the debt is settled and that nobody will come after you for the money later.

Clurbur85 · 30 March 2014 at 9:04AM

Hi all, I was wondering if you could help me...

I am in debt management. However I am in a much better position than I once was and I could now potentially pay lump sums off my debts. Yesterday I checked my credit file and I discovered two defaults that are set to fall off in 2015 (six years after being issued).

With debt one I owe £5,750 and a I have a second debt of £975 -- both default dates were in 2009. I also have a third default that was made in 2011, so that isn't set to fall off until 2017 -- debt three is for £675.

I really want to get my credit file in order as I would like to get a mortgage in a few years time. These debts are from another lifetime and I don't want them to hold me back forever. Anyway, I have a little bit of a plan and I was hoping to get your thoughts and opinions.

1) offer to pay a partial amount of debt one as a full and final offer -- if I do this and it is marked as "partially settled" will it continue to affect me indefinitely? Or will it no longer matter once the default has dropped off in July 2015? If it is going to continue to have an impact then do I need to ensure that the the full amount clearer? I am wondering if, given the default date, I am better off partly paying and putting that extra money towards a house fund.
2) again, with debt two, I am wondering if I should offer a percentage of the debt to close it, as the default will soon be up. Alternatively, I could aim to pay every last penny.
3) with debt three I am going to offer the full amount in exchange for the default being removed. Even if they say no, I am thinking that this default will look better in my file until 2017 as settled rather than partially settled.

I hope that all makes sense. I'd be really grateful for any advice.

Thanks,
Claire.

Stewart_78 · 2 April 2014 at 9:39AM

Even if it's marked as partially settled, it's still settled and once gone from your file, you won't need to declare it for a mortgage and they won't be able to see it at all.

If you are looking to apply for finance with a default on your file then having it marked as fully settled will be better but it might still cause you a problem.

Standingtall · 2 April 2014 at 3:17PM

Hi All

I was considering offering a few full and finals but wonder if there is any point on doing this on defaulted debts, i.e. due to them coming off my file at the fixed 6 year date, is it better to concentrate on those that have never been defaulted?

Any advice appreciated please:)

Regards
ST

Stewart_78 · 2 April 2014 at 4:15PM

Depends I guess. Are you still paying them? The debts will still exist even if they disappear from your file. You would still be legally obliged to declare them on a mortgage application for example.

The fact that they have fallen off your file (and the lender may not have a valid CCA) could well mean that you can get a far more favorable settlement as there is nothing they can do to your file in this case.

Standingtall · 2 April 2014 at 4:27PM

Stewart_78 wrote: »

Depends I guess. Are you still paying them? The debts will still exist even if they disappear from your file. You would still be legally obliged to declare them on a mortgage application for example.

The fact that they have fallen off your file (and the lender may not have a valid CCA) could well mean that you can get a far more favorable settlement as there is nothing they can do to your file in this case.

Thanks Stewart. I will be paying them eventually as a Full and Final (or in full) it was more a case of which to pay first. I'm thinking that they will not show after 2018 whereas the ones that have not defaulted me will still show if I do not pay them off before that day - therefore I suspect it may be better to tackle the undefaulted debts first (plus the latter could decide to suddenly default me next year or the year after - meaning another 6 years on file!!!

Cheers
SS

bdsimbec · 3 April 2014 at 10:15AM

Hi everyone

Am looking for some help for my daughter. She has debts of £11000 mostly over 6 years old. She hasn't paid on them due to divorce and the fact that she has moved a few times in the last few years.

She has recently had a letter from Lowell Financial asking for her to begin payments. She does want to be debt free as she would like to have a mortgage in the future. Anyone out there dealt with Lowell? I would be willing to lend her the money if we could negotiate a F&F with them. Should we start the offer with 30% of the £11,000 saying Without Prejudice that she is not in a position to repay but a relative has offered to pay off the loans for her if it can be negotiated down to 30%.

Tixy · 3 April 2014 at 11:42AM

bdsimbec wrote: »

Hi everyone

Am looking for some help for my daughter. She has debts of £11000 mostly over 6 years old. She hasn't paid on them due to divorce and the fact that she has moved a few times in the last few years.

She has recently had a letter from Lowell Financial asking for her to begin payments. She does want to be debt free as she would like to have a mortgage in the future. Anyone out there dealt with Lowell? I would be willing to lend her the money if we could negotiate a F&F with them. Should we start the offer with 30% of the £11,000 saying Without Prejudice that she is not in a position to repay but a relative has offered to pay off the loans for her if it can be negotiated down to 30%.

First of all when did she last pay towards this debt(s)? (I am not clear if they are chasing for several of her debts or just one).

Before she replies she first needs to look in to whether the debts may be statute barred already or about to become statute barred. Statute barred debts and the Limitation Acts

If the debts are statute barred then she is not required to make any repayment towards the debt at all.

mary_hinge · 3 April 2014 at 7:03PM

Hi,

I am tentatively dipping my toe in the world of F&F's in seach of ways to help shift my debt before my stepchange DMP dfd of 2021 :eek:

I have the following debts:

Hsbc passed to Metropolit collection £783.56 on my credit report as Hsbc and defaulted Dec 2012

Hsbc passed to Metropolit collection £2551.64 on my credit report as Hsbc and defaulted Dec 2012

Barclay card £8005.86 no default

Creation £8804.40 no default

Step change manage my Dmp which started in Feb 2012, my financial situation is unlike to change in the near future and my debts wont be repaid until 2021 at the current repayments.

What I would like to know is
1) can I offer f&f settlements to 1 of my debts or do I have to wait until I am in a position to offer to them all together?
2) the debts with Hsbc who would I write to? Hsbc? Metropolit collection? and during negotiations can I ask for the defaults to be removed as part as the full and final settlement agreement?
3) is there such a thing as a template letter to save me on any further brain ache?!:cool:

Thanks

Mrs H

Full and final settlement help thread

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